1. Farm Mechanization in India:

2. India Total population:1.21 billion (2011)
Population growth rate:1.5% annually
Majority (69%) of people live in rural areas.
Land area: million ha (2.4% of world)
17% of population;
Only 4.2% of world water; 1200 mm annual rainfall
Agriculture accounts for 80% of water needs; 60% from ground water.
52% workers in Agriculture: 14% of GDP;

3. Sales of Tractors and Power Tillers in India

4. Trend of power availability from different sources
Share of agricultural worker & draught animals came down from 63.5% in to 13.67% in

5. Comparison of Mechanization with Other Countries
Sl. No.
Country
Farm Power
No. of Tractors per 1000 Ha.
No. of Combine Harvesters per 1000 Ha.
(kW/Ha) 1
India
1.36
15.75
0.026 2
Japan
8.75
461.22
236.98 3
U.K.
2.5
88.34
8.3 4
France
2.65
68.5
4.93 5
Italy
3.01
211.08
4.71 6
Germany
2.35
79.817
11.41 7
Argentina --
10.74
1.79 8
Brazil
13.66
0.915 9
China
6.98
2.53 10
Pakistan
16.47
0.08 11
Egypt
30.7
0.79
Source: FAO Yearbook 2003

6. Population engaged in Agriculture vis-a-vis
level of farm mechanization
Former Soviet Union
[14.4%, 80%]
Western Europe
[3.9%, 95%]
United States
[2.4%, 95%]
China
[64.9%, 38%]
Africa
[60%, 20%]
India
[55%,40%]
Brazil
[14.8%, 75%]
Argentina
[9.4%, 75%]
Higher share of labour (55%) with lesser contribution to GDP (14%) makes farming in India less remunerative and incidence of farmers’ poverty

7. Farm Mechanization: Key driver of productivity
Agricultural productivity has positive correlation with level of farm mechanization

9. Tillage & seedbed Preparation Fertiliser Application
Level of Farm Mechanization in India
Tillage & seedbed Preparation
Sowing/ Planting
Fertiliser Application
Irrigation
Harvesting
Post Harvesting
Inter Cultivation
Plant Protection
Overall about 40-45%

10. Equipment manufacturers
Farm Mechanization: SWOT Analysis Strengths
Large No. of manufacturers
Testing Facility at : 4 FMTTIs , 30 designated centers and BIS labs
Vast network of academic and R&D institutions including 100 centers for research, technology transfer and extension
Equipment manufacturers
No. of units
Agricultural tractors
Power tillers
Irrigation pumps
Plant protection equipment
Combine Harvester
Reapers
Threshers
Seed Drills and planters
Diesel oil engines
Plough, cultivators, harrows
Chaff cutter
Rural artisans (hand tools) 13 2
600
300 48 60
6000
2500
200
5000 50
>1 million
Source: ICAR 2011

11. Average size of operational holdings
Source: Agriculture Census 2012.

12. The Core Issues
Small/Medium Farmers : Low credit worthiness
Adverse ‘Economies of Scale’;
Weak financial strength of majority of farmers (SMF);
Lack of access to credit to Rural Entrepreneurs for setting Custom Hiring Centre;
Need for promoting appropriate Farm Equipment: Low cost, region and crop specific, indigenous technology

13. Policy Framework : Addressing Issues
Addressing adverse ‘Economies of Scale’
Access to Credit
Promotion of appropriate Farm Equipment: Low cost, region and crop specific, indigenous
Unbundling Agriculture Services from Farmers;
Facilitate Entrepreneurs to establish Custom Hiring Centre;
Facilitating rural entrepreneurs
Special incentives to Small and Marginal farmers
Focusing on village level mechanization : low cost, region –crop specific, indigenous technology

14. Other Key Focus Area : Gender-friendly tools and equipment
High women workforce in agriculture – both in production and processing
Ergonomically designed tools and equipment for
Reduced drudgery
Enhanced safety & comfort

15. SUB-MISSION ON AGRICULTURAL MECHANIZATION

16. Mission Objectives
Increasing the reach of farm mechanization to small and marginal farmers and to the regions where availability of farm power is low;
Promoting ‘Custom Hiring Centres’ to offset the adverse economies of scale arising due to small landholding and high cost of individual ownership;
Creating hubs for hi-tech& high value farm equipments;
Creating awareness among stakeholders through demonstration and capacity building activities;
Ensuring performance testing and certification at designated testing centers located all over the country.

17. Sub Mission on Agricultural Mechanization (SMAM) : Key Interventions
1. Promotion and Strengthening of Agricultural Mechanization through Training, Testing and Demonstration 2. Demonstration, Training and Distribution of Post Harvest Technology and Management (PHTM) 3. Financial Assistance for Procurement of Agriculture Machinery and Equipment 4. Establish Farm Machinery Banks for Custom Hiring 5. Establish Hi-Tech, High Productive Equipment Hub for Custom Hiring 6. Promotion of Farm Mechanization in Selected Villages 7. Financial Assistance for Promotion of Mechanized Operations/hectare Carried out Through Custom Hiring Centres 8. Promotion of Farm Machinery and Equipment in North-Eastern Region:

18. Financial Assistance: Training
Trainees sponsored by the state nodal agencies to the User Level Courses at the FMTTIs will be paid 500/- per week per trainee. Travel expenses to the trainees admitted in these courses will be paid on actual basis by ordinary mode of transport from their place of residence to the training institute and back.
The training institutions will claim Rs 4000/- per person per week for the conduct of these courses. This includes:
stipend of Rs. 500/- per trainee per week
Actual to and fro travel expenses by ordinary mode of transport in ordinary class, upto maximum of Rs. 500/- per trainee
boarding and Lodging Rs. 1500/- per trainee per week
Institutional charges (including stationary, training material, Rs. 1500/-per trainee per week

19. Capacity Building Location of FMTTI’S
Northern Region Farm Machinery Training and Testing Institute Hissar,
1963
North-Eastern Region Farm Machinery Training and Testing Institute,
Biswanath-Chariali 1990
Central Farm Machinery Training and Testing Institute Budni 1956
Southern Region Farm Machinery Training and Testing Institute, Garladinne, Anantpur 1983

20. Demonstration
Field demonstrations of package of machines/equipments will be conducted on cropping systems based approach in the districts identified for AAP.
Financial Assistance: Demonstrations will be organized by ICAR, PSUs of GOI and State Government’s organizations. Government of India will provide 100% assistance for contingency expenditure per demonstration, as per following norms:
Power operated/self-propelled equipment
Rs /- per hectare
For hilly areas, cost per demonstration will be 1.5 times of said cost.
Animal drawn equipment
Rs. 2000/-per hectare
Manually operated equipment
Rs. 1500/-per hectare

21. Establishment of post harvest technology
The units utilizing the available post harvest technologies and management, value addition, scientific storage, packaging technologies and technologies for bi-product management .
Technical guidance on the available post harvest technologies will be provided by CIPHET Ludhiana and also by other ICAR/CSIR/SAU centers.
Financial assistance: PHT units shall be established in the production catchments with 50% assistance from the Government of India limited to Rs lakhs per machine/technology. (Additional 10 % assistance limited to Rs lakhs will be available for SC, ST, small & marginal farmers, women, and NE States beneficiary). Remaining cost will be borne by beneficiary.

22. Financial Assistance for Procurement of Agriculture Machinery and Equipment
Ranges 25% to 50% subsidy per machine
10% more subsidy to SC/ST/Women/Small & Marginal farmers/ NER states beneficiery

23. Farm Machinery Banks for Custom Hiring
S.N
ITEM
MAXIMUM PERMISSIBLE PROJECT COST
PATTERN OF ASSISTANCE A
Procurement subsidy for establishment of Custom Hiring Centre upto 10 lakh
Project based
Rs. 4.0 lakh
40% B
Procurement subsidy for establishment of Custom Hiring Centre upto 25 lakh
Rs lakh C
Procurement subsidy for establishment of Custom Hiring Centre upto 40 lakh
Rs lakh D
Procurement subsidy for establishment of Custom Hiring Centre upto 60 lakh
Rs lakh

24. MAXIMUM PERMISSIBLE PROJECT COST
Hi-Tech, High Productive Equipment Hub for Custom Hiring:   Financial Assistance
S.N
ITEM
MAXIMUM PERMISSIBLE PROJECT COST
PATTERN OF ASSISTANCE A
Procurement subsidy for establishment of Custom Hiring Centre upto 100 lakh
Project based
Rs lakh
40% B
Procurement subsidy for establishment of Custom Hiring Centre upto 150 lakh
Rs lakh C
Procurement subsidy for establishment of Custom Hiring Centre upto 200 lakh
Rs lakh D
Procurement subsidy for establishment of Custom Hiring Centre upto 250 lakh
Rs lakh

25. Promotion of farm mechanisation in selected villages
Objectives: To establish farm machinery banks by the Cooperative Societies of farmers, Self Help Group of Farmers etc. in the selected villages of low mechanized states so as to encourage members to take up appropriate mechanized operations To conduct demonstrations through Custom Hiring Centres in large areas with the assistance of Custom Hiring Centres set up under component (4).
Financial Assistance: Each village will be eligible for setting up of farm machinery banks upto a maximum project cost of Rs. 10 lakhs. Financial 80% of the project cost will be provided for such machinery banks.

26. Assistance for Mechanized operations.
Financial Assistance: Financial assistance will be available to the beneficiaries upto a maximum of 1 ha area as per following norms:
For tractor/power operated operations – 50% of the cost of operation /ha limited to Rs. 2000/ha per farmer per year
For animal drawn mechanized operations- 50% of the cost of operation /ha limited to Rs. 1000/ha per farmer per year
For manual operations –50% of the cost of operation /ha limited to Rs. 750/ha per farmer per year  

27. Promotion of farm machinery and equipment in North-Eastern States
Financial Assistance
ITEM
MAXIMUM PERMISSIBLE PROJECT COST
PATTERN OF ASSISTANCE
(a) Financial assistance for procurement of machinery/ implements
Upto Rs.1.25 lakhs per beneficiary
100% of cost of machinery/implement/equipment
(b) Financial assistance for Farm Machinery Banks for group of farmers
Upto Rs.10 lakhs per Farm Machinery Bank
95% of cost of Farm Machinery Banks

28. Distribution of Agricultural Machinery and Tools-(2014-15)

31. The total investment in Farm Mechanization sector through the various Schemes of Government of India is about Rs crores during which needs to be enhanced to Rs crores per annum by supplementing through State plan or other sources like Rural Infrastructure Development Fund (RIDF) etc. to achieve the target of farm power availability of 2kW/ha by which is presently about 1.73kW/ha.

32. Thanks